Word on the street: Supermarket prices 'a bit of a rort really'

Monday, 30 May 2022

Kiwis give their views on what's fair at the supermarket after the government warned they will need to change.

The Government has announced a “shake-up” of the supermarket industry as it seeks to break the back of the duopoly and get prices down for the public.

Minister of Commerce and Consumer Affairs David Clark said on Monday the Government was putting supermarkets on notice, and they needed to change 'at pace'.

Major policy changes were announced for the industry: the introduction of a market watchdog, a mandatory code of conduct, and compulsory unit pricing on items.

Another is supermarkets would have to open their wholesale operations to competitors, which Clark said should help a competitor to set up shop or expand here.

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Subashini Padubidrisi Srinivasan said in India prices were similar for the same items in different stores.

The announcement was light on details for the enforcement of these changes and whether the market watchdog would have any legal power in enforcing them.

Walter Hacon said more competition like the European supermarket giant Lidl would help prices decrease.

Experts were moderately positive about the changes, but were unsure whether they would take effect fast enough for immediate price relief at the till for punters.

James Bryenton thinks the government should cut taxes to help consumers.

So we went to the streets of Auckland and asked shoppers doing their evening groceries:

Millie Waikari thinks pricing transparency will help reduce prices but isn’t sure about the other policy changes.

What effect do you think the Government’s planned changes will have?

Subashini Padubidrisi Srinivasan, 43, Lynfield

“Coming from India, we are used to marked prices. It’s pretty much the same throughout the country for a particular company, a brand, irrespective of where it is sold so we don’t have ups and downs. Over here, in certain outlets you get the same thing for a ridiculously high price, in other outlet you get it for a low price.”

Walter Hacon, 68, Blackhouse Bay

“Basically in Europe you’ve got places like Lidl and other really very competitive people that come into the marketplace in London, where I come from originally, and that keeps the whole thing a lot more competitive, they don’t have that here and the result of it now is sky-high food prices and I think it’s a bit of a rort really.”

James Bryenton, 37, Grey Lynn

“Food prices, petrol prices, taxes, everything you know, as far as I’m concerned the sooner we get a new government in the better. Ultimately they’re going to have to reduce either GST or our taxes or take GST off food, some way around that.”

Millie Waikari, 27, Avondale

“It will be interesting to see if it does something, at least they’re doing something. I think the transparency, being able to compare prices between supermarkets will definitely help, but other than that I’m not sure.”